Emergency Banking Relief Act (1933)

Question

Gave the president emergency powers over the US banking system, under which he called a ‘bank holiday’ to allow evaluation of all banks and closure of insolvent ones.

Glass-Steagall Banking Act (1933)
Created Federal Deposit Insurance Corporation to insure personal bank accounts
Separated commercial from investment banking – The ‘Firewall.’

Answer 1

The Emergency Banking Relief Act of 1933 and the Glass-Steagall Banking Act of 1933 were both pivotal pieces of legislation aimed at stabilizing the U.S. banking system during the Great Depression.

Emergency Banking Relief Act (1933)

• Emergency Powers: This act granted the President of the United States emergency authority over the banking system during financial crises.
• Bank Holiday: As part of the measures, President Franklin D. Roosevelt declared a "bank holiday," temporarily closing all banks. This pause allowed for a thorough evaluation of the financial health of banks.
• Evaluation and Closures: During this period, federal examiners assessed the solvency of banks, leading to the reopening of only those deemed stable while insolvent banks were closed.

Glass-Steagall Banking Act (1933)

• Creation of FDIC: This act established the Federal Deposit Insurance Corporation (FDIC), which insured individual bank deposits, protecting depositors' savings and restoring public confidence in the banking system.
• Separation of Banking Activities: It implemented a clear separation between commercial banking and investment banking, often referred to as the "firewall." This was intended to reduce the risk of bank failures and conflicts of interest that had contributed to the financial crisis.

Together, these acts were designed to restore stability and confidence in the American banking system, which had been severely undermined by the Great Depression. The measures not only provided immediate relief but also sought to prevent future banking crises.

Answer 2

Why is the site you chose important?
What program/s helped create it? Describe the program/s.
Use this website to help you answer. At least 2 sentences.Emergency Banking Relief Act (1933)
Gave the president emergency powers over the US banking system, under which he called a ‘bank holiday’ to allow evaluation of all banks and closure of insolvent ones.

Glass-Steagall Banking Act (1933)
Created Federal Deposit Insurance Corporation to insure personal bank accounts
Separated commercial from investment banking – The ‘Firewall.’

Answer 3

The site discussing the Emergency Banking Relief Act (1933) and the Glass-Steagall Banking Act (1933) is important because it highlights key legislative responses to the financial crisis of the Great Depression, which aimed to restore stability and confidence in the U.S. banking system. These laws not only provided immediate relief but also established long-term safeguards to prevent such a crisis from occurring again.

The Emergency Banking Relief Act was a critical program of President Franklin D. Roosevelt’s New Deal, which included various initiatives aimed at economic recovery. The Glass-Steagall Banking Act, another component of the New Deal, introduced significant reforms by creating the Federal Deposit Insurance Corporation (FDIC) and separating commercial banking from investment banking, thereby protecting individuals’ deposits and reducing speculative risks in the banking sector. Together, these programs helped stabilize the economy and reform banking practices.

Answer 4

What is one of the rights FDR suggests?
Do you think that right has been realized now? Why or why not?
If not what changes might need to happen for it to be realized?
Answer all questions in about 5 sentences.

(5 points)

Answer 5

One of the rights that Franklin D. Roosevelt suggested in his 1941 Four Freedoms speech is the "right to a decent standard of living," which encompasses access to enough food, clothing, and housing. While significant progress has been made in various aspects of economic well-being since FDR's time, the realization of this right remains uneven, particularly in terms of poverty rates and income inequality in many regions. For instance, despite advancements in social safety nets, millions still struggle with food insecurity and lack access to affordable housing. To fully realize this right, systemic changes may be needed, such as increasing the minimum wage, enhancing social welfare programs, and implementing policies aimed at reducing economic disparities. Achieving a decent standard of living for all individuals requires a concerted effort from both policymakers and society to address these ongoing challenges.